Help Guide to use the Learn More About Healthcare Costs category: Click on LEARN MORE – GENERAL COST of Medical Care if you want to learn about a typical price or approximate average cost for surgery or health care service. The LEARN MORE – HEALTH INSURANCE cost category provides links to learn about problems of the uninsured, how much average insurance premiums cost, HSAs and High Deductible Health Plans, and the difficulty in finding low cost affordable health insurance.
Analysis by the American Hospital Association shows that Medicare and Medicaid under-pay the true cost of hospital care by about $100 billion. This cost ends up being borne by other payers and commercial insurance. Using 2020 data, it is estimated Medicare paid 84 cents on the dollar, and Medicaid paid 88. February 2022 report.
National Health Costs for 2021 reached an estimated level of $12,914 per capita (per person). Which means every man, woman and child spent on average, over $35 EACH DAY (either through insurance, out-of-pocket costs or taxes) to pay for America’s healthcare. This represented 18.3 percent of GDP, $4.3 trillion. Total health spending increased 2.7% in 2021. However, the percent of GDP devoted to health declined by 1.4 points from 2020. This is due to the overall economy growing 10.7% during the year, resulting in healthcare taking up a smaller proportion. Federal government spending on healthcare went down 3.5%, compared to nearly 37% growth during the first year of the pandemic. Federal COVID-19 supplemental funding went down almost 63% from 2020.
Medicare spending grew 8.4%,compared to 3.6% in 2020. Medicaid growth was 9.2%, similar to 9.3% in 2020. Private insurance increased by 5.8%, partly due to higher enrollment. Out of pocket increased by 10.4% as people returned to using services during 2021. Dental spending rose 16.1% in 2021. Retail prescription drug spending was up another 7.8%. Nursing home and retirement community spending declined by 7.9%. CMS data published December 2022.